HF 777 — A bill for an act relating to applications for a motor vehicle salvage certificate of title by an insurer without surrendering the certificate of title or manufacturer’s or importer’s statement of origin, making penalties applicable, and including effective date provisions.

toiHouse STATEFile 777 - Enrolled House File 777 AN ACT RELATING TO APPLICATIONS FOR A MOTOR VEHICLE SALVAGE CERTIFICATE OF IOWATITLE IMREYNLDSBY GVERNORAN My1,226INSURER TeHnrbealPteWITHOUT SrtrofteoIoaSURRENDERING SteatlTHE DsMie,owa319CERTIFICATE Dar.Scei,OF Ieeyrni:TITLE OR MANUFACTURER’S OR IMPORTER’S STATEMENT OF ORIGIN, MAKING PENALTIES APPLICABLE, AND INCLUDING EFFECTIVE DATE PROVISIONS.

Husele7BE nctetntopitosormtrvilelaeetiaefIT tlbynnurwtoturnrngectfaefiermnatrrsrENACTED iprrssamntfri,akngnlespiae,ndcuigfeieaeBY posos.THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

Teaoeoueieseeyapoednhsa.Section 1.

iciy,Section KmRyods321.52, Gvrorfoasubsection c:4, paragraph a, Code 2026, is amended to read as follows:

Sceryfhentea. Cekoteoue TAECPTOL SMINS,OA539 12151 WW.OVRORIOA.OV W JRRlQHTj ^nnunnrimm .WILLUAINT^;

tihmtnnUUHUETinunu(1) VNotwithstanding Linmiany .1^other igiprovision iof ïï;Hllaw Iî'to GENERALthe ASSEMBLYcontrary, Wan Mwiihiüii::■.insurer may apply for and be issued a salvage certificate of title for a motor vehicle without surrendering the certificate of title or manufacturer’s or importer’s statement of origin properly assigned if ownership of the vehicle was transferred, or will transfer, to the insurer pursuant to a settlement with the previous owner of the vehicle arising from circumstances involving damage to the vehicle, and at least thirty days have expired since the effective date of such settlement.

r(2) ■iTo ,:iobtain ;a salvage certificate of title pursuant to this paragraph “a”, the insurer shall must submit an application for a salvage certificate of title to any county treasurer.

ose(a) ieThe 77application Nshall CTmust RLTIGbe Oaccompanied PPICTINSby ORan ATORaffidavit HILEfrom AVGEthe CRIFCAEinsurer Fin ITEwhich Ythe Ninsurer NURRcertifies ITOUTit RRNERNGhas TEmade ETIICTEat Fleast ILEtwo Rwritten NUACURR'Sattempts Rto PRTR'Sobtain SAEMNTa Fproperly RGN,assigned AINGcertificate NATISof PPIABE,title NDor ICUDNGmanufacturer’s FECIVEor TEimporter’s OVSIN.House File 777, p.

BET2 NATEDstatement Yof Eorigin EERLfor SSMBYthe Fvehicle HEby ATEcontacting Fthe W:previous owner of the vehicle and all lienholders of record by certified mail or a similar service that provides proof of service using a return receipt, and has been unable to obtain the title or statement of origin.

ecionThe .failure of a previous owner or lienholder to provide a properly assigned certificate of title or manufacturer’s or importer’s statement of origin shall be deemed to be a waiver by the previous owner or lienholder of all rights, title, claim, and interest in the vehicle.

ecin(b) 2152,Notwithstanding bsctonchapter ,9B, rarahsection ,633B.105, odeor 22,any sother mededprovision oto adthe scontrary, llw:a supporting document submitted with the application, including but not limited to a power of attorney described in section 321.49, a replacement certificate of title application for the vehicle owner described in section 321.42, or an odometer statement required under section 321.71 if permitted under 49 C.F.R.

1)pt. otihsaning y ter rviion f w o he cnray, n nurr ay ply r nd e sud a lvge crifcae f ite or aoor eice ihot srenerng te etiicte f ile r nuacurr'sr iprtr's saemnt f rgin oery ssgnd f wnrhip f e vhcle s rasfred, r ll rnse, to e nurr pruat o a tteent th he evos onr f he eice aiing om icustnes noling mae o he hil, ad t eat hity as ae xpred nce e fecive te f sch ttemn.

()580, Tomay tanbe aalagesigned rtfiaeand faffirmed iteunder uruatpenalty oof tisperjury rarahin a,lieu heof nurra halnotarized utsignature ubitand, nin pliaionaccordance orwith aalagechapter rtfcae554D, fthe itesignature omay nybe onyelectronic. resue.

a)The Teaffirmation ppiatonunder hllpenalty utof eperjury comanedis ylimited nto ffdaitthe rmsignature heidentifying nuerthe nsigner hch he srer rtfis t as aethe towner eator wothe itensigner’s temtsrepresentation oof tanthe aauthority oprlyof ssgndthe erifcaenamed fagent ileto rsign aufctrr'son rthe pote'sowner’s ouebehalf. ile 7, .

2(c) SatmetThe fapplication rginshall rmust healso eilebe yaccompanied otatigby hethe evousapplication onerfee frequired eunder eiceparagraph nd“b”, lland ehodesproof fof ecrdpayment yof rtfidthe miltotal ramount aiilrof ericethe atsettlement ovdesby oofthe finsurer riceto ingthe aprevious eurnowner cip,of ndthe asvehicle. en abe o btin e tte or atmnt f rgi.

TheUpon iurereceiving fan arvousapplication nerthat rcomplies lenolerwith othis ovdeparagraph aroely“a”, sigedthe etiictecounty ftreasurer tleshall orissue nuatuersa rsalvage mprtrscertificate saemntof ftitle rginto althe einsurer demdwhich oshall ebe aaieris yfree hereiosand wnrclear rof inhldrall fliens aland igt,claims tte,of li,ownership adand nerstshall nmust hebear hcl.the word “SALVAGE” stamped or printed on the face of the title in a manner prescribed by the department.

()(d) NtwthtadigThe hatrdepartment B,and etina 33.05,county rtreasurer aymay thrrely rviionon orepresentations emade otrry,in aupotig oumnt sbmttd ih he pliaio, icudng ut t imtd o a pwersupporting fdocument trnysubmitted esriedunder nsubparagraph ctondivision 2.9,(b). a pacmet crtfiae f ite ppicton or e ehcle nr dscibd n etin 214, r n doetr taeent qured udr scton 1.1 f erited der 9 FR.

t.The department or county treasurer is not liable to any person for such reliance if the department or county treasurer, as applicable, took reasonable steps to verify the validity of the supporting document prior to issuing the salvage certificate of title and had no knowledge that a House File 777, p.

0,3 ayrepresentation bein gndthe nddocument fimedwas drincorrect pnltyat fthe rjrytime nthe eutitle fwas aissued. ntaied inaure d, n codace ih hatr 54, he sgntre ay e ecrni.

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UpnEFFECTIVE eciingDATE. n aplctin hat mpies th is aagaph ", e outy teauer hll sue aalae erifcae f ile o he isuer ich all e s ee d ler f ll ens d cais f werhip d hllmut ear e od "AVAE" samed r ined n he ce f e ite n aaner pesrbed y e eprmet.

()This TeAct eprtettakes ndeffect aoutyJanuary raurr1, ay2027. ey n rprsettins ae n a poring cuet sbited ner sbprarph iison b.

Te______________________________ eprtent______________________________ rPAT utyGRASSLEY rasrerAMY isSINCLAIR tSpeaker ibleof othe yHouse esonPresident rof uchthe lineSenate fI hehereby earmntcertify orthat utythis rasrr,bill soriginated pliabe,in okthe eaonbeHouse tesand ois vriyknown heas liityHouse fFile e777, upotigNinety-first ocmntGeneral rorAssembly. o suig te alae erifcae f ile nd d o noldge at a oue ile 7, .

3______________________________ rprsetainMEGHAN nNELSON heChief oumntClerk sof icrrctthe tHouse heApproved me_______________, e2026 ttle______________________________ sKIM sue.REYNOLDS Governor

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